The Z station occupies a 971sq m site at 303 Remuera Rd. Photo / Supplied
Z Energy's high-profile Remuera Rd property is on the market for the first time in more than six decades, presenting a redevelopment opportunity in the affluent Auckland suburb.
Occupying a 971sq m freehold site, the property at 303 Remuera Rd, is zoned for a variety of uses — up to 18m in height.
The new owner will have the benefit of a leaseback of the service station to Z, providing holding income while they work out how best to unlock the site's future potential.
Colliers International brokers Peter Herdson, Jason Seymour and David Burley are marketing the property for sale by deadline private treaty. Offers close at 4pm on October 24, unless it is sold earlier.
Seymour says redevelopment opportunities with such potential are few in tightly-held Remuera Rd.
"The property has been occupied by a busy suburban service station for more than 60 years, not ever being offered for sale in that time. The property is zoned Business Town Centre with an 18m height control, allowing for intensive mixed-use redevelopment of up to four storeys. It would be ideal for ground floor retail, with residential apartments or offices on the upper floors.
"A proposed March 2019 settlement date, combined with holding income further sweetens an already a superb redevelopment opportunity."
Herdson says the property is offered for sale with a proposed two-year leaseback to Z on the service station component of the property. There are also two existing leases to a garage and a billboard, both of which include termination provisions for redevelopment.
The three leases combined will provide a new owner with $150,541.96 in annual holding income while they make plans to redevelop the site.
This breaks down to three revenue streams, including the main service station lease, the mechanic and billboard.
The proposed two year lease to Z will earn $103,000 in annual rent and with no rights of renewal.
The mechanic, John Andrew Motors, is signed to a 12-year lease earning $28,630.71 in annual rent, with no rights of renewal. This lease expires in March 2029, with a six-month termination clause allowing earlier redevelopment. There is provision for 2 per cent annual rent growth except for market reviews in 2021 and 2025.
The billboard, leased to APN, earns $18,911.25 in annual rent. A five year right of renewal extends the total term to 2025, with the lease indicating a three-month termination clause in place for redevelopment. This lease includes 2.5 per cent annual rent growth except for a market review in 2020.
Herdson says the site is surrounded by some of the best schooling, housing and shopping precincts in the country.
"Remuera is a prominent central Auckland suburb that benefits from exceptional access to the Auckland motorway network and Auckland's CBD."
"It is only 2km to Newmarket and the Greenlane motorway junction, 2.5km to Parnell, 5.5km to Mission Bay and 6km to the heart of the CBD."
Herdson says Remuera Village, the suburb's commercial hub, is home to a variety of food and beverage, retail and commercial offerings.
"Plans are in place for several major commercial redevelopments. These will complement significant renovations that have already transformed some buildings along Remuera Rd."
"Nearby Newmarket is Auckland's retail hotspot. It is set to become even more desirable, with the largest Westfield development in the Southern Hemisphere underway at 277 Broadway."
Burley says Remuera remains one of Auckland's most sought after residential suburbs, particularly its northern slopes, which start at Remuera Rd and run down to Auckland's waterfront.
"The suburb has some of the highest house values in New Zealand. The median house price was $1,851,000 as of July 2018 – almost double Auckland's overall median house price of $930,000."
Remuera is also within the coveted double Grammar zone. Other popular schools in the area include Baradene, St Cuthbert's, Diocesan, King's, and St Kentigern.
Burley says the property's well-presented improvements were built in the 1950s and modified over the years.
"A highly recognisable and prominent canopy covers the forecourt, which has four fuel pumps offering eight filling stations."
"Behind the forecourt is a retail shop including customer toilets, a manager's office and a built-in chiller."
Burley says the workshop is located beneath the retail shop, with access via a driveway along the eastern boundary of the site.
"Z Remuera is one of those sites that cannot be ignored."